LOUISVILLE, Ky., Oct. 24 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced an agreement to acquire the assets of all
the Medicare-certified home health agencies owned and operated by Quality
of Life Holdings, Inc. (Quality of Life). Largo, FL-based Quality of Life
operates 4 agency locations in Florida in the Tampa Bay area.
Company Comments on Acquisition
"We are very pleased to welcome the employees and patients of Quality
of Life to our family of home health providers, and we are extremely
excited about this acquisition," said William B. Yarmuth, chairman and
chief executive officer of Almost Family. "We've been familiar with Quality
of Life for some years now and we are particularly excited about adding
Quality of Life's highly specialized program for providing home health care
in group living environments to our growing list of specialty home health
programs."
Formed in 1996, Quality of Life operates home health branches in Largo,
Tampa, New Port Richey and Brooksville FL serving a daily census of nearly
600 Medicare patients. The company currently attends to patients residing
primarily in group living settings such as assisted living facilities,
independent living facilities, senior retirement communities, HUD-sponsored
apartments for the elderly and disabled, and public housing facilities. Mr.
Michael Moses, CEO and founder of Quality of Life, will join Almost Family
as Vice President of Group Living Programs. He will continue to operate the
Quality of Life branches and will be responsible for expanding Quality of
Life's specialized program throughout Almost Family's service areas. In
twelve months ended December 31, 2006 Quality of Life generated Medicare
revenues of $7.9 million. In the twelve months ended September 30, 2007
Quality of Life generated Medicare revenues of $9.4 million.
Regarding Mr. Moses, Yarmuth concluded: "We are especially happy to
welcome Michael to our management team and are anticipating the
contributions we know he will make in the pursuit of our strategic growth
plan."
Moses made the following comments regarding joining the Almost Family
team: "I've undergone a long and very thorough process prior to entering
into this transaction. After considering many different companies to
combine with I selected Almost Family to entrust my operations and my
future with. I am extremely excited to join the Almost Family management
team. I am really looking forward to playing a leadership role in expanding
Quality of Life's special brand of home health care throughout the Almost
Family network."
Financial Implications
The agreement calls for an initial purchase price of $10 million,
consisting of $8 million cash, and $2 million (or approximately 100,000
shares) of Almost Family common stock (restricted). Additional
consideration of up to $6.9 million may be paid contingent primarily upon
the achievement of certain development targets following the closing. The
cash portion of the transaction will be funded from borrowings available on
the Company's existing senior credit facility with JP Morgan Chase Bank,
NA. Subject to usual and customary closing conditions, the transaction is
expected to close before the end of October, 2007. The transaction is not
expected to add materially to 2007 earnings but is expected to be accretive
to earnings in 2008.
Almost Family, Inc., founded in 1976, is a leading regional provider of
home health nursing services, with branch locations in Florida, Kentucky,
Ohio, Connecticut, Massachusetts, Missouri, Alabama, Illinois and Indiana
(in order of revenue significance). Almost Family, Inc. and its
subsidiaries operate a Medicare-certified segment and a personal care
segment. Altogether, Almost Family operates 69 branch locations in 9 U.S.
states.
Contact: William Yarmuth or Steve Guenthner (502) 891-1000.
All statements, other than statements of historical facts, included in
this news release, are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of forward-looking terminology such
as "may," "will," "expect," "believe," estimate," "project," anticipate,"
"continue," or similar terms, variations of those terms or the negative of
those terms. These forward-looking statements are based on the Company's
current plans, expectations and projections about future events.
Because forward-looking statements involve risks and uncertainties, the
Company's actual results could differ materially from any future results,
performance or achievements expressed or implied by such forward-looking
statements. The potential risks and uncertainties which could cause actual
results to differ materially include: regulatory approvals or third party
consents may not be obtained, the impact of further changes in healthcare
reimbursement systems, including the ultimate outcome of potential changes
to Medicare reimbursement for home health services and to Medicaid
reimbursement due to state budget shortfalls; the ability of the Company to
maintain its level of operating performance and achieve its cost control
objectives; changes in our relationships with referral sources; the ability
of the Company to integrate acquired operations; government regulation;
health care reform; pricing pressures from Medicare, Medicaid and other
third-party payers; changes in laws and interpretations of laws relating to
the healthcare industry; and the Company's self-insurance risks. For a more
complete discussion regarding these and other factors which could affect
the Company's financial performance, refer to the Company's various filings
with the Securities and Exchange Commission, including its filing on Form
10-K for the year ended December 31, 2006, in particular information under
the headings "Special Caution Regarding Forward-Looking Statements" and
"Risk Factors." The Company undertakes no obligation to update or revise
its forward-looking statements.
SOURCE Almost Family, Inc.
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Related links:
http://www.almost-family.com
http://www.prnewswire.com/comp/784275.html /
CONTACT:
William Yarmuth; or Steve Guenthner
+1-502-891-1000, both for Almost Family, Inc.
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